How startup scene reported, receives Westwing a new €24 million financing round – but without much publicity. Is the Munich-based startup stumbling on its path to profitability?
A multi-million-dollar investment that the shopping portal Westwing doesn't even warrant a press release. There's currently intense speculation about why the startup, part of Rocket Internet, is keeping such a low profile.
Profitability in sight at Westwing?
According to the company, the Munich-based startup sees itself well on its way to profitability. Looking at current figures, the balance sheet appears to be positive: The EBITDA margin increased by 25 percentage points in the first quarter of 2016 compared to the previous year. The loss during this period was six million euros, compared to 19 million euros in the previous year.
Declining customer loyalty is cited as one of the problems Westwing is struggling with. Rocket Internet's 2015 annual report shows that while the number of customers increased by 500,000 to 1.7 million, orders only increased by 300,000. To continue growing, the Munich-based startup will need to generate more purchases in the future. As a strategic move, the company therefore intends to focus more on customer loyalty in the future.
Should this lead to success and the Munich startup ultimately become profitable, one thing can certainly be expected again: a press release from Westwing.
